Lazaretto National Savings & Loans makes five types of loans. These loans with the yearly interest rate charged to customers, are shown in the table below: Type of Loan Commercial loans First home mortgage Home improvements Second home mortgages Short-term revolving loan Interest Charged (%) 15 10 13.6 14 18 The bank has $53 million in available funds. Its objective is to maximise the yield on investment. The Demand for Funds The demand for short-term revolving loans never exceeds $5 million. All other demands are unlimited.